Ric Edelman to Cut Ties With Bitwise

As Edelman explained, the SEC has expressed two primary concerns with bitcoin ETFs: custody and price manipulation. "I believe both of those concerns will be resolved to their satisfaction, and probably sooner rather than later."

Edelman, who spoke with ThinkAdvisor before conducting an educational session for advisors on understanding cryptocurrencies and blockchain, said that "many advisors are no more knowledgeable about this subject than their clients, and many of them are getting questions from clients and they are unable to answer."

Edelman stated that his session was designed as an "introductory course on blockchain and crypto assets, to help advisors understand the technologies and help them decide whether they should be recommending crypto — whether or not crypto belongs in your portfolio."

Generally speaking, he said, "advisors know very little about the subject and they have a knee-jerk reaction, they are equating it to Beanie Babies and tulip bulbs.

Are advisors' fears about crypto justified? "No, it's not justified at all," Edelman said. "The whole reason that they're feeling that way is because of the rapid rise in price in 2017 followed by the crash in 2018, and they're using that as evidence to support their theory that it's a fad or a scam. It demonstrates a complete lack of understanding of the technology. The mere fact that an asset rises significantly in value and crashes has nothing to do with whether that asset is legitimate or not."

— Related on ThinkAdvisor:

• Bitwise Files for Bitcoin ETF With the SEC
• Want to Build Your Business? Hire an Intern — TD LINC
• Roubini: Cryptocurrencies Are the 'Mother of All Scams'
• Fidelity Rolls Out Crypto Trading and Custody Firm